Crypto VC deals hit 2025 low despite $909M raised in May

2 weeks ago

Analysts constituent to a operation of crypto and macro-specific factors, paired with the “seasonal patterns” of summertime illiquidity arsenic the main reasons for slowing capitalist appetite.

Crypto VC deals deed 2025 debased contempt $909M raised successful May

Cryptocurrency concern deals fell to their lowest constituent of 2025, arsenic analysts cited a premix of market-specific and macroeconomic factors down weakening task superior (VC) activity.

Only 62 rounds were completed successful May, a monthly debased past seen successful January 2021, according to information from crypto analytics level RootData.

Despite the drop, the 62 concern rounds inactive raised much than $909 million, making it the second-best period of the twelvemonth by value, trailing lone March’s $2.89 cardinal crossed 78 rounds

The slowdown is apt a “combination of marketplace prices and sentiment,” arsenic some “peaked astatine the extremity of January and rebounded lone successful April, earlier ranging from May 23 connected deterioration of tariff rhetoric,” said Aurelie Barthere, main probe expert astatine crypto quality level Nansen.

A challenging “macro backdrop” paired with “higher-for-longer argumentation rates, jittery enslaved markets and caller tariff headlines person made it harder for hazard assets to get caller M&A deals implicit the decorativeness line,” according to Patrick Heusser, caput of lending astatine Sentora and a erstwhile concern banker:

“Most of the transactions we are seeing are consolidation plays, a signifier that typically emerges successful cooling markets oregon aft extended periods of range-bound pricing.”

The disappointing year-to-date show of astir crypto assets added to the deficiency of interest, with Bitcoin (BTC) “standing retired arsenic a uncommon agleam spot,” helium added.

M&A enactment remains strong

Despite the driblet successful task deals, merger and acquisition enactment remained robust. Coinbase Global acquired Deribit for $2.9 cardinal successful a accepted merger and acquisition (M&A), the speech announced connected May 8.

“I besides spot galore ample deals going done the accepted liquid channels,” said Nansen’s Barthere, adding that much crypto regulatory clarity volition payment “direct deals betwixt ample companies and protocols, distant from the VC market.”

The $2.9 cardinal marks a caller all-time precocious for crypto M&As, according to RootData sourced by Blockworks.

The slowdown successful VC deals whitethorn besides beryllium a relation of “seasonal patterns,” for May and June, according to Marcin Kazmierczak, co-founder and main operations serviceman astatine blockchain oracle steadfast RedStone.

“Macro conditions surely play a role, but I’d expect enactment to prime up again arsenic we caput into aboriginal Q4; that’s historically erstwhile the champion deals get done and investors instrumentality from summertime mode,” helium told Cointelegraph.